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Central govt releases Rs 6,195 cr to 14 states as devolution of taxes

Friday, 11 Sep 2020
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The Central government has released Rs 6,195.08 crore to 14 states as the sixth equated monthly installment of the Post Devolution Revenue Deficit Grant (PDRDG) recommended by the 15th Finance Commission.

The Union Budget 2020 had projected the share of the states in taxes at Rs 7.84 trillion for 2020-21. The 15th Finance Commission had recommended the share of states at 41 percent of the divisible pool and one percent for the newly-created Union Territories of Jammu and Kashmir, and Ladakh.

The 14th Finance Commission had earlier recommended that the states be given 42 percent share in taxes.

The Commission is to give recommendations for devolution of taxes and other fiscal matters over the next five years starting 1 April 2020.

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